Revised OAR SIM QUESTION! HELP NEEDED
ryannnnnnnnnnnnn
New MemberRegistered Posts: 13
Hi,
Can some1 be able to help me with regards to answering the question
Basis Department A Department B
Supervisor Rates £20000 No Emplee £10000 £10000
Rates Rents £10000 Area 8000 2000
Labour Hours 1000 500
Machine Hours 50 1000
Furhter Info: The salary costs only realte to Department A. Department B is mainly machien based.
Requirement: Reapportion the above rates on a more suitable basis and calculate OAR for each department.
Any help HUGELY grateful
Can some1 be able to help me with regards to answering the question
Basis Department A Department B
Supervisor Rates £20000 No Emplee £10000 £10000
Rates Rents £10000 Area 8000 2000
Labour Hours 1000 500
Machine Hours 50 1000
Furhter Info: The salary costs only realte to Department A. Department B is mainly machien based.
Requirement: Reapportion the above rates on a more suitable basis and calculate OAR for each department.
Any help HUGELY grateful
0
Comments

ryannnnnnnnnnnnn wrote: »Hi,
Can some1 be able to help me with regards to answering the question
Basis Department A Department B
Supervisor Rates £20000 No Emplee £10000 £10000
Rates Rents £10000 Area 8000 2000
Labour Hours 1000 500
Machine Hours 50 1000
Furhter Info: The salary costs only realte to Department A. Department B is mainly machien based.
Requirement: Reapportion the above rates on a more suitable basis and calculate OAR for each department.
Any help HUGELY grateful
Dept A Dept B Total
Supervisor Wages 10000 10000 20000
Rent & Rates 5000 5000 10000
Totals 15000 15000 30000
Re Apportion Wages 20000 0 20000
ReApportion Rent & Rates 8000 2000 10000
Total Costs 28000 2000 300000 
ryannnnnnnnnnnnn wrote: »Hi,
Can some1 be able to help me with regards to answering the question
Basis Department A Department B
Supervisor Rates £20000 No Emplee £10000 £10000
Rates Rents £10000 Area 8000 2000
Labour Hours 1000 500
Machine Hours 50 1000
Furhter Info: The salary costs only realte to Department A. Department B is mainly machien based.
Requirement: Reapportion the above rates on a more suitable basis and calculate OAR for each department.
Any help HUGELY grateful
Dept A Dept B Total
Supervisor Wages 10000 10000 20000
Rent & Rates 8000 2000 10000
Totals 18000 12000 30000
_____________________________
Re Apportion Wages 20000 0 20000
ReApportion Rent & Rates 8000 2000 10000
Total Costs 28000 2000 30000
This is what i have come up with, but the question you are asking isnt clear?
Are we treating Labour and Rent seperately?
I would presume we treat them as a total figure, therefore:
Dept A = 28,000/Labour Hrs 1,500 = £18.66 OAR as more labour is carried out in that Dept.
Dept B = 2,000/1,050 Mach Hrs = £19.05 OAR as this dept mainly uses Machines.
Also above i have Apportioned Rent & Rates as Follows:
£10,000 / 1,000 (Floor Area) = £10
£10 x 800 (Floor area A) = 8,000
£10 x 200 (Floor Area = 2,000
I hope this is right.
As the question was a bit unclear i have presumed the above to be the most obvious assumptions.0 
i know the question threw me but thtat wasthe question that i was given0

ryannnnnnnnnnnnn wrote: »i know the question threw me but thtat wasthe question that i was given
I would presume the above unless anyone has got a better answer.0